Small businesses hit by the recent violent protests in South Africa’s economic hub, Gauteng, can from this week access relief funds from the provincial government. Many micro, small and medium enterprises in the province have been brought to the brink by the effects of the Covid-19 pandemic. This was recently exacerbated by an outbreak of looting and vandalism in Gauteng and KwaZulu-Natal.
But now help is at hand. According to the Gauteng Economic Development Department and the Gauteng Enterprise Propeller (GEP), which helps develop SMMEs, R100-million would be made available for SMMEs in distress. Applications to access the fund have been opened.
The R100-million Gauteng Rebuilding Fund forms part of the province’s response to the riots that adversely affected many small businesses, particularly those without insurance. According to the department, R50-million was raised by the Gauteng government and the other R50 million was raised through partnerships with the Industrial Development Corporation (IDC).
The loan/grant blend will be capped at R1-million for formal SMMEs and R50,000 for informal businesses. Gauteng Economic Development MEC Parks Tau and GEP CEO Saki Zamxaka announced the details of the relief package this week. Zamxaka said that the fund would be offered as a blend of loans and grants. “The funding will help businesses get back on their feet by covering for rebuilding costs, repairs, replacement of infrastructure, inventory, equipment, and critical supplies,” he said. Qualifying businesses must be based in the province and demonstrate that they can pay back the loan component of the fund.
Businesses are also expected to provide proof that they were trading before the outbreak of the civil unrest. Businesses that have applied for insurance relief through the SA Special Risks Insurance Association are not eligible for assistance through the fund.“ The time is now for those small enterprises to use the recent experiences to review their operations to be better prepared for the future,” Tau said.
“The R100-million rebuilding fund is a first step towards bringing economic relief to the most informal enterprises, who play a critical role in our township economy.” Qualifying businesses are encouraged to visit the GEP website to download applications and follow the instructions stated on the website.
They can alternatively visit their nearest regional office to get assistance. The funding will be available on a first-come, first-served basis until the money is depleted.
“The township economy, which has been badly affected by the COVID-19 pandemic and most recently the unrest that characterised parts of the country, is considered as one of South Africa’s economic growth frontiers,” said IDC CEO Petrus Nchocho.
-vutivibusiness
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